15% Petroleum Tax Must Be Scrapped Now!

The Institute of Energy Security (IES) has called for the outright abolishment of the 15 percent Special Petroleum Tax.

The call comes after the Chamber of Petroleum Consumers (COPEC) and the Industrial and Commercial Union (ICU) embarked on a demonstration over frequent hikes in petroleum prices.

The Special Petroleum Tax is one component in the price buildup of fuel at the pumps

The National Petroleum Authority (NPA) has assured that it will take a look at tax and make some adjustment.

But in an interview with Citi Business News, the Principle Research Analysts of the IES, Richmond Rockson maintained that the tax is a nuisance, hence must be removed.

“The challenge is not just about it being 15%. If they make it a specific tax, what it means is that if prices are going up on the international market, it will still be the impact on consumers will still be the same here in Ghana,” he argued.

Mr. Rockson stressed that the best way to reduce the burden Ghanaians are going through is to scrap the tax to bring some relief to consumers.

“We are saying that, the NPA and government must abolish it, it's not a conversation we are looking at. Even if we are going to keep it there and its one pesewa, it will still have an effect on the price on the local market so they should just abolish it. We disagree with the NPA that it should rather have a fixed price,” he maintained.

Industry reacts to high petroleum pricesThe Chamber of Petroleum Consumers (COPEC) had said it will continue to hit the streets to demonstrate if the petroleum sector regulator fails to scrap the 15% Special Petroleum Tax.

COPEC last Wednesday, 7th February 2017 led a demonstration over the increasing price of petroleum products, which they say has brought hardship on Ghanaians.